- Fortnox reported net sales of SEK 563 million for Q1, up 21% year-over-year, matching the estimated SEK 562.8 million.
- The company achieved an operating profit of SEK 246 million, a 33% increase from the previous year, surpassing the estimated SEK 240.9 million.
- Operating margin improved to 44%, compared to 40% in the previous year, and exceeded the estimated 43.3%.
- Net income rose significantly by 41% year-over-year to SEK 210 million, beating the estimated SEK 192.1 million.
- Profit before tax was positively influenced by approximately SEK 17 million. This included SEK 5 million from other operating income and SEK 12 million from financial income.
- A notable positive impact on profits came from the revaluation of warrants received from Mynt AB, expected to convert to shares in the upcoming quarter.
- According to Acting CEO Roger Hartelius, Fortnox remains relatively immune to macroeconomic fluctuations but is still somewhat affected by global economic conditions.
- The company’s operations are limited to a national market, dealing in a single currency, with no export activities involved.
- Investment analysts currently rate Fortnox with 2 buy recommendations, 4 holds, and 1 sell recommendation.
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Fortnox on Smartkarma
Independent analysts on Smartkarma are buzzing about the recent analyst coverage of Fortnox. Jesus Rodriguez Aguilar, in the report “Cloud Control: EQT Logs In to Fortnox,” highlights EQT and First Kraft’s offer of SEK 90 per share for Fortnox, indicating a strong belief in the company’s high-growth SaaS model. The bid, valuing Fortnox at SEK 54.9 billion, comes with a 38% premium, showcasing confidence in Fortnox‘s future potential. With the board’s unanimous recommendation and key stakeholder commitment, competing bids are deemed unlikely, creating a lucrative opportunity for arbitrage investors.
Gregory Ramirez‘s analysis, “European Software: Fortnox (FNOX SS) Going Private – Might Makes Right,” emphasizes the strategic move of Fortnox receiving a public tender offer from EQT and First Kraft at SEK 90 per share. This offer, signaling a rebound in Software M&A activity, represents a significant premium and highlights the trend of SaaS companies going private. Despite potential shareholder concerns, the deal might succeed given Fortnox‘s impressive market performance and the overall positive outlook for the company.
A look at Fortnox Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 5 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Fortnox AB, a provider of internet-based business software solutions for various office applications, such as accountancy, bookkeeping, and payroll, displays a promising long-term outlook based on the Smartkarma Smart Scores. With a strong focus on growth and momentum, Fortnox excels in these aspects with scores of 5 for Growth and Momentum. This indicates a positive trajectory for the company’s expansion and market performance in the foreseeable future.
Moreover, Fortnox demonstrates resilience with a score of 4, indicating its ability to withstand challenges and navigate uncertainties efficiently. While the Value and Dividend scores come in at 2, suggesting some room for improvement in these areas, the overall outlook for Fortnox appears optimistic, especially in terms of growth potential and market momentum. Investors may find Fortnox an enticing prospect for long-term investment opportunities.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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